Intermodal shippers should save more money using rail in the third quarter compared with this spring when the coronavirus disease 2019 (COVID-19) closed US businesses, with trucking rates climbing in June and July, particularly in Southern California where truck and rail capacity are extremely tight.
Union Pacific Railroad is instituting a $500 surcharge on excess contract cargo. Additionally, two intermodal marketing companies have told JOC.com that UP is raising spot rates $500 on all California outbound lanes, except to Miami where it will raise rates more than $1,000 per container. UP doesn’t comment on intermodal pricing.